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A SPECIAL REPORT:

ATLANTA - THE FUTURE IS BRIGHT FOR THIS DOMINANT SOUTHERN CITY

By: Ken Corsini Georgia Residential Partners, LLC

Atlanta has many unique aspects which make living, working and investing in Atlanta a profitable endeavor.

This report highlights several of the many characteristics that make Atlanta attractive to business leaders, their employees and their families; and these qualities make Atlanta a great market for “Buy and Hold” real estate investors.

The timing to acquire residential income property for the long term has never been better. Both prices and interest rates are low, while a growing population of renters has kept rents strong relative to price. The result is strong cash flows on quality properties in good neighborhoods supported by one of largest and most diverse metropolitan areas in the United States.

In fact, the Atlanta MSA (Metropolitan Statistical Area) ranks in the top ten by population and according to the U.S. Census Bureau, was the 2nd fastest growing MSA from 2000 to 2010.

Atlanta is unique in that there is no one single dominant element that makes it a standout for investing. It’s actually a combination of several critical characteristics which combine to create a recipe for long term real estate prosperity.

Let’s examine some of the many enticing facets of the gem that is Atlanta!

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Atlanta is the epicenter and capitol of the South. With its mild climate, preeminent healthcare facilities, unsurpassed international airport and its track record for sustained population and job growth, Atlanta is poised to continue its dominance as one of the top metropolitan cities in the country.

The Atlanta region is a major U.S. metropolitan area and provides an exceptional business environment and quality of life. According to both the Atlanta Development Authority and the U.S. Census Bureau, Atlanta has consistently attracted college educated 25 to 34 year olds. With both a large and well educated workforce, and great shipping and distribution infrastructure, it’s no wonder so many large corporations call Atlanta home.

In addition to attracting the young, college educated crowd, a growing number of baby boomers are finding themselves moving to Atlanta to take advantage of the plethora of cultural experiences, health care options and outdoor activities.

Atlanta provides a highly desirable quality of life. After spending a few days in and around Atlanta, most visitors begin to understand why so many people desire to relocate and raise their families in Georgia.

Located at the foothills of the Appalachian Mountain range, Atlanta enjoys a temperate climate with less than two inches of snow annually, which permits an active outdoor oriented lifestyle.

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Just an hour and a half to the north of Atlanta are a wide range of mountain choices providing the outdoor enthusiast with an array of camping, hiking, rafting and golfing options.

Six hours to the southwest of Atlanta is the Gulf of Mexico. This favorite vacationing destination is home to some of the most beautiful beaches in the United States.

Closer to home, Lake Sydney Lanier is only forty

minutes northeast of Atlanta and attracts 7.6 million

annual visitors.

Also near the city are Piedmont Park, the Atlanta Botanical

Gardens and Stone Mountain. Each option provides a

unique and diverse experience.

Atlanta and its surrounding communities provide a broad

and diverse array of cultural and entertainment options.

Many are located in and around downtown Atlanta,

including:

High Museum of Art

Alliance Theater

Symphony Hall

Atlanta Ballet

Fox Theater

There are also attractions dedicated to the rich history of Atlanta. Many visitors enjoy the

Martin Luther King Jr. National

Historic Site and the Jimmy Carter Presidential Library.

On November 23, 2005, The Georgia

Aquarium officially opened its doors

to the public. With over ten million

gallons of water, it is the largest

aquarium in the world.

Through a path of more than sixty

exhibits, the Aquarium tells a global

water story, with features modeled

after the greatest zoos and aquariums

in the world. Each majestic exhibit is designed to inspire, entertain and educate. The co-

founder of The Home Depot, Bernie Marcus, was a major benefactor and donated more than

$250 million to allow the Aquarium to open its doors debt free.

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Educational infrastructure is an important part of the appeal of Atlanta to both

employers and residents.

Georgia has numerous highly regarded state universities including the University of Georgia,

Georgia Tech and Georgia State University. There are thirty one accredited universities in the

state of Georgia.

Emory University is a private university with an excellent reputation. There are many public

and private school options for younger K-12 children.

Atlanta also boasts one of the premier health care systems in the southeastern United States and is also the national headquarters for the Centers for Disease Control and Prevention. In addition to the CDC, there are many prestigious hospitals in the region

including Emory, Saint Joseph’s Hospital, Piedmont, Grady Memorial, Northside Hospital and many more.

Children’s Healthcare of Atlanta was ranked by US News and World Report as one of the top children’s hospitals in the country.

More than 100,000 health services personnel are employed in the Atlanta metro, which makes for one of the nation's highest concentrations of health care experts. Atlanta has over 13,000 physicians and 12,300 beds at fifty-two hospitals.

Atlanta has become an international city. In 1996, Atlanta was host city to the

Centennial Summer Olympics. This extraordinary event turned the eyes of the world to

Atlanta. Ever since, Atlanta has attracted investors and entrepreneurs from all over the world.

The Olympic Games had an added benefit of

building a number of major sporting facilities to

bolster an already dynamic sports city. With

professional sports teams in baseball, football,

basketball and soccer there are many choices for

the sports minded spectator.

The NCAA Basketball Final Four is often held in Atlanta and no spring would be the same

without a trip to The Masters Golf Tournament in nearby Augusta, Georgia.

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COST OF LIVING

US News and World Report ranks Atlanta as the Most Affordable Place to Buy a Home

BELOW IS A COMPARISON OF HOME PRICES, RENT AND ENERGY COSTS IN ATLANTA AS COMPARED TO LOS ANGELES

Product Metro - Atlanta GA Metro Los Angeles-

Long Beach- Difference

Home Price $261,224.00 $585,579.67 $324,355.67

Apt. Rent $790.22 $1,840.75 $1,050.53

Total Energy $143.34 $181.07 $37.73

Data source: ACCRA www.costofliving.org

POPULATION GROWTH

Ask any Atlantan to name a word to describe the changing Atlanta population and the word “dynamic” often comes to mind. It describes the rapid changes the city has seen and will see in Atlanta demographics over the next 10 years.

In the past six years, the Atlanta metro has added more than 450,000 people annually - more than other MSA in the United States. At this growth rate, the projected population of Atlanta's 20 core counties for 2020 is 6.4 million people. Atlanta has no natural boundaries, so the metropolitan area is large, encompassing 8,480 square miles. Across the region, 28 counties and 140 municipalities govern. The City of Atlanta itself is in the center of the metropolitan area and encompasses 131 square miles. Growth means the Atlanta population has become more diverse. In fact, the city's racial diversity is greater than the U.S. as a whole. Atlanta is also younger than the U.S. population, with an average age of 34 compared to the average of 36 for the entire nation.

If you are planning a visit to Atlanta, be cautious. Many people who visit fall in love and decide to call Atlanta home. With great weather, diverse Atlanta population and strong economy, it's easy to see why!

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Here are some interesting facts about Atlanta’s current and projected population:

From 2000-2007, the population of the Atlanta MSA grew by just under 1,000,000 new residents, ranking it as the nation’s fastest growing MSA.

By 2020, the area is forecasted to be the 6th largest metro area in the country with a population of 7,291,964, according to Proximity One.

A report from the Atlanta Regional Commission forecasts 3 million new residents in the next 30 years.

As of 2011, the city of Atlanta's population is 543,504 people. Since 2000, it has had a population growth of 30.43 percent.

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TRANSPORTATION

Of course, every major metro needs great transportation infrastructure to support the needs of a large industrial base and a growing population. Fortunately Atlanta has an excellent transportation system.

Hartsfield-Jackson Atlanta International Airport is the world’s most-traveled airport serving over 90 million passengers annually. To put this in perspective, that’s the equivalent of nearly 1/3 of the ENTIRE U.S. population traveling through Atlanta every year. It is the U.S. hub for Delta Airlines.

Access to air transportation is critical for moving people and products in and out of the Atlanta metro quickly and efficiently.

The Atlanta airport continues to be a major factor in the decision making process for Fortune 500 companies as well as the growing community of world travelers.

Eighty percent of the U.S. can be reached within a two-hour flight from Atlanta. Ninety international destinations in 55 countries are non-stop connected to Atlanta.

In addition, there are 20 regional airports scattered throughout metro Atlanta. These airports have runways that are 5,000 feet or longer and are suitable for corporate jets. Six of these airports are designated as reliever airports for the main Hartsfield-Jackson International Airport.

In addition to the world’s busiest airport, Atlanta boasts a federal interstate system which provides trucking access for the delivery of industrial, commercial and consumer products to more than 80 percent of the U.S. in two days or less. There are over 60 motor freight carriers operating out of 23 different terminals serving the people and businesses of metro Atlanta.

This superior transportation infrastructure has resulted in UPS, FedEx, the U.S. Postal Service, DHL and Airborne Express all operating major distribution facilities in Atlanta, providing essential overnight international shipping services to companies doing business in and out of Atlanta and the South.

Like most large cities, Atlanta also has a large public transportation infrastructure. The Metropolitan Atlanta Rapid Transit Authority (MARTA) is the 8th busiest rapid transit system in the United States.

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JOB GROWTH

All of the aforementioned quality of life, population growth and infrastructure are compelling, for real estate investors it all needs to lead to jobs for working class people.

Once again, Atlanta shines brightly.

Atlanta is one of the top cities for Fortune 500 headquarters in the country. There are currently fourteen Fortune 500 companies calling Atlanta home. These house hold names include:

Home Depot

United Parcel Service

Coca-Cola

Delta

Aflac

Southern Company

Genuine Parts

First Data

Sun Trust Bank

AGCO

Coca-Cola Enterprises

Newell Rubbermaid

Mohawk Industries

NCR

Job creation is a major strength of the Atlanta market. The Atlanta Journal Constitution recently published a report from the Economic Forecasting Center at Georgia State University that predicted Atlanta would see over 78,000 JOBS in 2012.

Atlanta has a diverse economy with major business sectors focused on trade, transportation, health care, professional and business services, and government. There are over 2,100 international companies headquartered in Atlanta. Georgia has also attracted many businesses associated with the movie industry. The most recent report on this industry showed an economic impact on the state of Georgia of $1.15 billion. Some of the more notable movies filmed in Georgia include The Blindside, Driving Miss Daisy and Sweet Home Alabama.

Atlanta was ranked #1 as the “Most Business Friendly” city in North America according to the 2007/2008 fDi magazine. In April 2011, fDi Markets reported:

“Atlanta has witnessed the most headquarter location projects in the US since 2003, beating out New York and San Francisco. According to fDi Markets, the city received 36 projects from 2003 ... Figures from fDi Markets show that Atlanta, Georgia is the top US location for companies looking to set up a headquarters in the country ... Figures from fDi Markets show that Atlanta, Georgia is the top US location for companies looking to set up a headquarters in the country ... Atlanta favoured US destination for HQs”

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REAL ESTATE SNAPSHOT (AUG 2013)

In the post-crash climate of real estate investment, Atlanta stands out as a market with consistent appreciation. This appreciation shows no signs of stopping, as inventory is low, demand is high, and large investment groups are working to raise the value of entire neighborhoods at a time. No wonder Atlanta consistently places among the best investment markets. Atlanta has been steadily recovering from the post-crash low reached in March of 2012. According to the Case and Shiller Price Index, sale prices are up 20.1% from a year ago, and up 29.7% from the lowest point. This has been a steady, consistent appreciation on a month by month basis, and appreciation well above the national average. Case and Shiller list the national appreciation over the last year at 12.2%, roughly 8% lower than Atlanta.

Inventory is low, with only a 3.6 month inventory according to Smart Numbers, as opposed to the 6 month inventory that is considered a balanced market. Investor purchases continue at a high pace, contributing to the imbalance and continuing to drive up prices at the low end of the market. Homeowners are seeing the appreciation and many are deciding to continue holding or improving their homes, according to Arielle Kass of the Atlanta Journal Constitution. In her article on July 31, 2013 Kass cites evidence that many people are choosing to redo kitchens or construct additions in lieu of selling and moving, feeling they would not yet be able to obtain the full value of their house. Some areas of Atlanta have been slower to recover than others, and it is to these areas that some of the larger investment groups have been focusing their funds, as well as various non-profit groups. These groups have put money into entire neighborhoods at once, renovating and improving the feel of the neighborhood as a whole and consequently raising home values. Even

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some local government funding has been funneled into this effort, stimulating the growth and appreciation of the Atlanta market. While house prices are still 22.7% below the high of 2007 according to Case and Shiller, Douglas Sams of the Atlanta Business Chronicle says that rent rates are already at or exceeding the peak rates of 2007. As house prices rise, many people moving to Atlanta are forced to rent instead of buy, making investment deals more attractive with excellent cash flow. Investors who turn away from Atlanta seeing rent to value ratios lower than three years ago would do well to look again. Total return numbers are strong and continue to rise, due to the steady appreciation underway in the market. This is especially true for leveraged properties in the many attractive residential areas surrounding Metro Atlanta. Even with a mortgage, these properties show positive cash flow, which combined with the principle payment and the leveraged appreciation yield strong total returns. Recovering strongly from the real estate crash, Atlanta remains an excellent market for investment. Low inventory, as well as efforts from investment and non-profit groups, are driving steady and consistent appreciation with no signs of leveling off in the near future.

Mike Williams is in charge of investor relations for Georgia Residential Partners, LLC, a turnkey

provider of positive cash flow residential rental properties in Atlanta, Georgia. Contact Mike at (770)

924-5450 or mike@gainvesting.com.